Learn how a family operation in the Pacific West dropped their rate by 250 basis points.

When borrowers close a loan with AgAmerica, that’s just the start of a valuable and supportive financial partnership. AgAmerica is in it for the long haul, meaning we are constantly looking for new ways to save you money and help you succeed.

The Challenge

After a couple of challenging years, owners of a family-operated vineyard in Washington were looking to recapitalize their operation and cut overhead. In 2019, they partnered with AgAmerica to acquire capital and make operational improvements that helped them regain access to their land equity and supported them through the 2020 storm of the COVID-19 pandemic, when business shuttered and retail wine sales took a nosedive. The family used this safety net of capital to pivot and adapt in the face of these historic challenges, making improvements to their membership program and online store. Through this process, they increased their wine club memberships by 1,000 percent and cultivated new wholesale relationships across the globe. Now, they were interested in restructuring their loan obligation in a way that built on this success further.

The Solution

AgAmerica was a proud partner with the family since 2019, when we were able to cut down on their annual debt service and allow more free cash flow through an interest-only facility. Understanding their changing needs, we took their existing interest-only loan and transitioned it to a 30-year conventional loan that knocked 250 basis points off their original rate within less than a month once the appraisal was received. Through this restructuring, the family was able to set up a long-term financial plan that would support their operation for when the time came for the next generation to take over the winery.